US lawmakers who helped secure billions of dollars in subsidies for domestic semiconductor manufacturing rejected US President Donald Trump’s call to revoke the 2022 CHIPS and Science Act, signaling that any repeal effort in the US Congress would fall short.
US Senate Minority Leader Chuck Schumer, who negotiated the law, on Wednesday said that Trump’s demand would fail, while a top Republican proponent, US Senator Todd Young, expressed surprise at the president’s comments and said he expects the administration to keep the program running.
The CHIPS Act is “essential for America leading the world in tech, leading the world in AI [artificial intelligence], and in bringing back good paying manufacturing jobs to the US,” Schumer said in an interview.
Photo: Bloomberg
The US$52 billion semiconductor subsidy program, which received bipartisan support, has spurred more than US$400 billion in investments from companies such as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Intel Corp. When it passed, as a signature piece of former US president Joe Biden’s agenda, it won support from dozens of Republican lawmakers.
Speaking to a joint session of the US Congress on Tuesday night, Trump called for its repeal, to applause from congressional Republicans, including those whose states have benefited.
Republicans control both chambers of the US Congress, but a slim House of Representatives majority, plus an expected Senate filibuster, would make a repeal politically difficult. The legislation has drawn investments to Republican strongholds, such as Ohio and Texas, as well as Schumer’s home state of New York.
The US president has consistently derided a program he characterizes as a waste of government funds, arguing tariffs would achieve the same outcome while filling coffers. Trump pointed to the US$100 billion in new investment planned by TSMC in the US as evidence of the power of tariffs.
Schumer said there have already been benefits with many factories under construction. He said some have already gotten their money, but projects could be put at risk if Trump succeeded in repealing funding.
“That’s why it had such bipartisan support, and I believe that there’ll be an overwhelming number of people in the Senate — Democrat and Republican — who want to keep it,” Schumer added.
Republicans have previously indicated that they want to remove what they see as “social” provisions of the CHIPS Act. That could involve eliminating labor-friendly regulations or environmental requirements.
US Senator Mike Crapo, who heads the Finance Committee, on Wednesday said that he would be open to some adjustments to the act, but opposes a full repeal.
“We’re not looking at that,” Crapo said.
Young called the law “one of the greatest successes of our time,” and said he received assurances from Trump Cabinet nominees both in public and in private that they would carry out the CHIPS Act before he committed to supporting their confirmation.
The Indiana Republican said he reached out to the White House on Tuesday night after Trump’s speech and expressed a willingness to improve the program.
“My expectation is the administration will continue to support this supply chain resiliency and national security initiative,” he said. “If it needs to transfer over to a different model over time, I’m open to that.”
Democratic US Senator Mark Kelly of Arizona, whose state is home to several factories planned by TSMC and Intel with CHIPS Act support, said he would be scrutinizing the Trump administration’s work in implementing the law, to ensure none of the money is held back.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) would not produce its most advanced technologies in the US next year, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. Kuo made the comment during an appearance at the legislature, hours after the chipmaker announced that it would invest an additional US$100 billion to expand its manufacturing operations in the US. Asked by Taiwan People’s Party Legislator-at-large Chang Chi-kai (張啟楷) if TSMC would allow its most advanced technologies, the yet-to-be-released 2-nanometer and 1.6-nanometer processes, to go to the US in the near term, Kuo denied it. TSMC recently opened its first US factory, which produces 4-nanometer
PROTECTION: The investigation, which takes aim at exporters such as Canada, Germany and Brazil, came days after Trump unveiled tariff hikes on steel and aluminum products US President Donald Trump on Saturday ordered a probe into potential tariffs on lumber imports — a move threatening to stoke trade tensions — while also pushing for a domestic supply boost. Trump signed an executive order instructing US Secretary of Commerce Howard Lutnick to begin an investigation “to determine the effects on the national security of imports of timber, lumber and their derivative products.” The study might result in new tariffs being imposed, which would pile on top of existing levies. The investigation takes aim at exporters like Canada, Germany and Brazil, with White House officials earlier accusing these economies of
Teleperformance SE, the largest call-center operator in the world, is rolling out an artificial intelligence (AI) system that softens English-speaking Indian workers’ accents in real time in a move the company claims would make them more understandable. The technology, called accent translation, coupled with background noise cancelation, is being deployed in call centers in India, where workers provide customer support to some of Teleperformance’s international clients. The company provides outsourced customer support and content moderation to global companies including Apple Inc, ByteDance Ltd’s (字節跳動) TikTok and Samsung Electronics Co Ltd. “When you have an Indian agent on the line, sometimes it’s hard
PROBE CONTINUES: Those accused falsely represented that the chips would not be transferred to a person other than the authorized end users, court papers said Singapore charged three men with fraud in a case local media have linked to the movement of Nvidia’s advanced chips from the city-state to Chinese artificial intelligence (AI) firm DeepSeek (深度求索). The US is investigating if DeepSeek, the Chinese company whose AI model’s performance rocked the tech world in January, has been using US chips that are not allowed to be shipped to China, Reuters reported earlier. The Singapore case is part of a broader police investigation of 22 individuals and companies suspected of false representation, amid concerns that organized AI chip smuggling to China has been tracked out of nations such
RSS